---
title: "Freelance rate calculator: an hourly rate that pays"
description: "Free freelance rate calculator. Turn your income goal, expenses, time off and billable hours into the minimum hourly and day rate you should charge."
canonical: "https://www.meadowdesk.com/tools/freelance-rate-calculator"
last_modified: "2026-10-27"
---

# Freelance rate calculator

Source: https://www.meadowdesk.com/tools/freelance-rate-calculator

Free freelance rate calculator. Turn your income goal, expenses, time off and billable hours into the minimum hourly and day rate you should charge.

Turn your income goal, business costs and time off into an hourly rate that actually pays the bills, including the hours nobody invoices.

## How to use it

1. Enter your income goal: what you want to pay yourself in a year, before income tax.
2. Add your yearly business expenses, like software, equipment, insurance and an accountant.
3. Set your working weeks, days and hours. Be honest about holidays and sick days.
4. Slide billable utilization to the share of that time you can actually invoice, and add a profit buffer.
5. Read your minimum hourly rate, the day rate it implies and your break-even rate.

## Freelance rate calculator FAQ

**What should I charge as a freelancer?**
Start with the rate from this calculator: it’s the least you can charge and still reach your income goal. Then look at what clients in your field pay for similar work, and what the result is worth to them. If the market pays more, charge that. If it pays less, you’ll need more billable hours, lower costs or a different niche. If the result is above what your current clients pay, the [rate increase letter](https://www.meadowdesk.com/tools/rate-increase-letter) moves them up with notice.

**Why is my freelance rate so much higher than my old hourly wage?**
An employer pays for your holidays, sick days, equipment and the hours you spend in meetings. As a freelancer your rate has to cover all of that, plus the sales and admin time no client pays for.

**What is billable utilization?**
It’s the share of your working hours you can invoice. The rest goes on proposals, email, bookkeeping and finding the next client. If you’re not sure, start around 60–70% and adjust once you’ve tracked a few weeks.

**Should my income goal include tax?**
Use the amount you want to earn before income tax, like a salary. Then put a slice of every payment aside for tax. The [tax set-aside calculator](https://www.meadowdesk.com/tools/tax-set-aside-calculator) works out how much.

**Should I charge hourly or by the project?**
Either works. Even when you quote a fixed price, keep your hourly rate underneath: estimate the hours, multiply by your rate and add a margin for the unknowns. That way a project price never quietly drops below what you need, and once the work is done, the [project profitability calculator](https://www.meadowdesk.com/tools/project-profitability-calculator) shows whether it held.